Skip to content

Break-even applications

Unit 6: Accounting for Profit PlanningTopic 6 of 6
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

8 units
On this page

What the syllabus expects

  • Changes in selling price, fixed and variable costs
  • Step fixed costs
  • Multiple-product situations
  • Margin of safety
  • Selling price for a desired profit
  • Advantages and limitations

Break-even applications

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 6: Accounting for Profit Planning

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of break-even applications.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Changes in selling price, fixed and variable costs
  • Step fixed costs
  • Multiple-product situations
  • Margin of safety
  • Selling price for a desired profit
  • Advantages and limitations

Detailed Microsyllabus

  1. Sensitivity analysis

    1. Changes in price, variable cost and fixed cost.
    2. Step fixed costs and relevant ranges.
    3. Multiple-product sales mix and weighted contribution.

  2. Planning applications

    1. Margin of safety.
    2. Selling price for a specified profit objective.
    3. Advantages and limitations of break-even-based decisions.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.